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4.3.3 Cash Settled Put Option Contract

In the case of a cash settled put Option Contract:

(a) the Buyer (taker) of the Option Contract acquires the right to receive an amount equivalent to the difference between the exercise price of the Option Contract and the settlement price in consideration for a contract premium, if the settlement price is lower than the exercise price; and
(b) in the event that the Buyer of the Option Contract exercises that right, a Seller (grantor) as appointed by the Clearing House in accordance with the Clearing Rules assumes the obligation to pay the amount referred to in Rule 4.3.3(a) to the Buyer.